- Here’s Why You Should Add Clearway Energy Stock to Your Portfolio Now – January 10, 2025
- A Growing Asset for Investors
- ‘Physical AI’: An All-Robotics Portfolio Sleeve, Preparing For ‘Thor’
- $151 billion Man: Steve Ballmer’s portfolio is almost entirely dependent on Microsoft’s stock
- 3 BNY Mellon Mutual Funds to Enhance Your Portfolio Performance
RenaissanceRe Holdings Ltd. RNR is currently aided by improved premiums and investment income, sturdy segmental performances, buyouts, and a solid financial position. The rise in returns from the fixed maturity portfolio and improving underwriting results add further momentum.
Bạn đang xem: Here’s Why You Should Hold RenaissanceRe Stock in Your Portfolio
In the past six months, RNR has delivered 11% growth, outperforming the industry’s 2.1% growth. The company’s price performance also outperformed its peers, such as First American Financial Corporation FAF and Fidelity National Financial, Inc. FNF, which gained 1.6% and 2.5%, respectively. The company also outperformed the S&P 500’s 3.9% rise.
RNR’s 6-Month Price Performance Comparison
Image Source: Zacks Investment Research
Now, let’s take a look at the stock’s growth drivers.
RenaissanceRe is actively pursuing growth through strategic acquisitions and business expansion. The recent acquisition of Validus Re and related businesses from AIG has significantly strengthened its global property and casualty reinsurance operations and enhanced profitability. The company also optimizes its portfolio by divesting non-core assets.
RNR’s strong cash position supports its growth initiatives and shareholder returns. Over the past 12 months, it generated $3.9 billion in net operating cash flow and repurchased $106.8 million in shares in the third quarter.
Xem thêm : Fineqia’s Digital Asset Portfolio Surges 38.4% After Strategic Bitcoin-Heavy Repositioning
Increasing premiums from its Property and Casualty & Specialty segments are expected to drive performance further. Strong underwriting results contribute to profit growth, which is evident in recent upward estimate revisions.
Moreover, RNR is currently trading at a discount compared to the industry average. The stock is currently trading at 1.24X, trailing 12-month tangible book value, which compares to 1.48X for the industry, indicating undervaluation. The company has a Value Score of B.
Reflecting the positive sentiment around RenaissanceRe, the Zacks Consensus Estimate for earnings per share has seen upward revisions. The consensus estimate for 2024 adjusted earnings for RNR is currently pegged at $42.29 per share, which indicates 12.7% year-over-year growth. The company beat earnings estimates in each of the past four quarters, with an average surprise of 28%. The consensus estimate for 2024 revenues suggests 35.5% year-over-year growth.
Image Source: Zacks Investment Research
There are a few factors that investors should keep an eye on.
RenaissanceRe faces escalating expenses due to higher net claims and claim expenses, acquisition costs, and operational expenses. We expect these to escalate by more than 44% on a year-over-year basis in 2024. The rising expenses pose a risk to the company’s profit margins.
Nguồn: https://earnestmoney.skin
Danh mục: News
